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US Trade Deficit Widens as Imports Surge in August
In August, the United States bought a lot more from other countries than it sold to them.
That made its trade deficit grow to $105.6 billion.
Imports rose by $17.2 billion, while exports rose by $4.5 billion.
The larger gap mostly came from goods, while the United States had a small increase in its services surplus.
So far this year, the deficit is still lower than it was during the same period in 2025.
Strong demand from shoppers and businesses has led companies to bring in more goods from abroad.
Economists say this could slow economic growth, though consumer spending may help make up for some of the effect.
The US goods and services trade deficit rose 13.7% to $105.6 billion in August, from a revised $92.8 billion in July.
Imports increased $17.2 billion to $420.8 billion, while exports rose $4.5 billion to $315.2 billion.
The goods deficit widened $12.8 billion to $136.6 billion; the services surplus edged up to $31 billion.
Through August, the deficit was $138.2 billion, 19.9% lower than in the same period of 2025, as exports grew faster than imports.
Economists said import demand could weigh on third-quarter GDP, although consumer spending is expected to offset some of that drag.
- Who
- The United States; the figures were reported by the US Census Bureau and Bureau of Economic Analysis.
- What
- The goods and services trade deficit widened to $105.6 billion in August.
- Where
- United States.
- When
- August; the data was released on Tuesday.
- Why
- Imports rose substantially faster than exports, with strong domestic demand cited as a factor.
Trade Deficit Concerns
Growth Offsetting Factors
Imports and economic growth
Trade Deficit Concerns
Economists said trade has subtracted from GDP for three straight quarters and could cut as much as 2.5 percentage points from third-quarter growth.
Growth Offsetting Factors
Consumer spending is expected to offset some of the import-related drag, and growth estimates for the July–September quarter were mostly above a 3.0% annualized rate.
Monthly versus year-to-date trade
Trade Deficit Concerns
The August deficit widened more than expected as imports surged, renewing pressure on the monthly trade balance.
Growth Offsetting Factors
The deficit through August was 19.9% lower than in the same period of 2025, with exports rising more than imports over that period.
Key facts
- August trade deficit
- $105.6 billion, up $12.7 billion from July's revised $92.8 billion
- Monthly change
- 13.7% increase; economists polled by Reuters had forecast $102.0 billion
- August exports
- $315.2 billion, up $4.5 billion
- August imports
- $420.8 billion, up $17.2 billion
- Goods deficit and services surplus
- Goods deficit widened $12.8 billion to $136.6 billion; services surplus edged up by less than $0.1 billion to $31 billion
- Year-to-date deficit through August
- $138.2 billion, 19.9% lower than in the same period of 2025
- Three-month average deficit
- $89.9 billion for the three months ending in August, up $9.9 billion
- Estimated third-quarter GDP effect
- Economists estimate trade could subtract as much as 2.5 percentage points from GDP growth
Sources
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